Budget Support

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Budget support is a particular way of giving international development aid, also known as an aid instrument or aid modality. With budget support, money is given directly to a recipient country government, usually from a donor government. Budget support differs from other types of aid modalities such as:Balance of payments support, which is currently mainly the domain of the International Monetary Fund. With balance of payments support the funds go to the central bank for foreign exchange purposes, while with budget support they generally go to the Ministry of Finance and into the budget for public spending. Project aid, where development assistance funds are used by donors to implement a specific project, with donors retaining control of the project's financing and management.

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